Intuit TurboTax Class Action Lawsuit

Intuit TurboTax Class Action Lawsuit

Intuit TurboTax began drawing a lot of customers to their site when they began marketing, ‘file 2008 taxes free‘. However, a class action lawsuit was filed against Intuit TurboTax stating that the company was not revealing fees being charged. The lawsuit stems from TurboTax allowing filers to have their preparation fees deducted from their tax return. TurboTax charged an additional $29.95 if online customers opted to have fees deducted.

Class Action (film) (Photo credit: Wikipedia)

The lawsuit alleges Intuit’s processing fee was not disclosed as a finance charge so an APR or annual percentage rate was never provided. Since TurboTax essentially lent money to filers who chose this option, an APR should have been present. There was another class action lawsuit, Smith v. Intuit, Inc in February, 2013, which was resolved with the new lawsuit pending.

Intuit has denied that it was involved in any deception or wrongdoing and agreed to give customers full refunds through the class action settlement fund.

Currently there is a $6.55 million Settlement Fund. How much each person will receive depends on the number of people who actually file a valid claim form. The deadline to submit a claim form is October 28, 2013.

Anyone who used TurboTax online and opted to have their TurboTax fees deducted from their refund between January 12, 2008 and May 28, 2012 can take part in the settlement. Claims can be filed online at the official website, TurboTax Class Account, which makes the process easier for anyone wishing to file.

Intuit TurboTax is a very popular online software tax preparation that walks people through the process of filing their federal and state income taxes. They check the return for errors and you have the choice to e-file, which makes getting refunds faster.